Sticky market conditions in the US and surging energy prices cut full-year profits at sugar producer Tate & Lyle, the group said today.
Record production levels in the US meant raw and white sugar prices tumbled but energy costs across the group rose during the year by £45 million sterling.
Tate & Lyle saw its pre-tax profits for the year to March 31st tumble to £113 million before exceptional costs, compared with £209 million the previous year.
The group is selling off its major US sugar divisions in a bid to revive its fortunes.
Today, it announced the sale of Western Sugar for an initial £68 million and said it was in "advanced negotiations" to sell off its US refiner Domino Sugar.
But due to the tough market conditions on the other side of the Atlantic, Tate & Lyle has lowered the value of both by more than £300 million.
Tate & Lyle chief executive Mr Larry Pilliard said: "This has been an extremely difficult year. In 32 years, I have never seen the convergent market factors like we have had in this past year."
He said market conditions had "overshadowed a lot of good work and progress" made during the year.
PA